Turkey: World Bank opens Islamic Finance Centre in Istanbul

Istanbul: World Bank launched Islamic Finance Development Centre in collaboration with Turkish government Wednesday. This news had been in circulation but finally now the centre has been established this further strengthens prospects for Islamic finance in the region. Turkey has not been as swift as Malaysia or the UAE for example, with its measures to part take in the Islamic finance and banking sector.

The centre is expected to share information on the development of Islamic finance, to give consultancy service on Islamic finance, and play the role in strengthening the institutional infrastructure

World Bank President Jim Yong Kim said at the joint press conference that Turkey is taking giant steps in becoming a global financial centre and described World Bank’s cooperation with Turkey as a symbol of shared objectives and shared prosperity.

Ali Babacan stressed that the interest-free finance system is the core of the Islamic finance system, which not only contributes to financial stability but also eliminates risks.

“Because behind this kind of financing system there are real assets and real value,” he said. “Even IMF has reported the advantages of an interest system based on the Islamic principles of interest-free finance system.”